Who,of the Following Options,does Not Suffer the Costs of Inflation

question 128

Multiple Choice

Who,of the following options,does not suffer the costs of inflation?

• A) People on fixed incomes
• B) People whose incomes rise more rapidly than inflation
• C) Firms that have to devote more time and labour to raising prices
• D) An investor that has to pay higher taxes because of the inflation

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Definitions:

Partnership Debts

Liabilities or financial obligations incurred by a partnership in the course of its business activities.

Limited Liability

This refers to a business structure where the owners' personal assets are protected from company debts and liabilities.

Sole Proprietorship

A company that is both owned and run by one person, with no separate legal identity between the proprietor and the business itself.

Separate Legal Entity

A business structure that is legally considered an independent entity separate from its owners, such as a corporation or LLP.